(Updates prices, adds quote)
By Maryelle Demongeot
SINGAPORE, May 28 (Reuters) - Gold took a breather on
Wednesday after the previous day's 2 percent fall in the wake
of a sharp decline in oil, while platinum fell by as much as 4
percent in Tokyo, catching up with losses in other commodities.
Gold <XAU=> traded flat at $907.50/908.50 an ounce by 0609
GMT versus $907.10/908.30 in New York on Tuesday, after having
opened lower at $904.70/906.70.
"Oil prices fell and therefore all commodities fell, too.
The price of gold fluctuates with oil prices these days, and it
is very difficult to predict," said Yukuji Sonoda, precious
metals analyst with Tokyo-based Daiichi Commodities.
Platinum prices in Japan fell sharply, tracking Tuesday's
losses in New York.
The most actively traded futures contract <0#JPL:>, for
April, neared the 300-yen daily limit by the end of the morning
session on the Tokyo Commodity Exchange, before recovering from
lows in the afternoon session.
Tokyo platinum futures for April were down 226 yen at 6,815
yen by the end of the morning session. The contract had settled
a mere 3 yen down on Tuesday.
"I am not anxious about platinum. This is only a temporary
fall," Sonoda said. "Prices are decided by supply and demand
and demand is strong. Automobile companies will soon enter the
market."
Platinum's major industrial use is in catalysts,
particularly in diesel catalysis, to help cleanse
environmentally damaging fumes from motor exhausts.
The much less liquid August, October, and December
contracts hit the 300-yen daily limit earlier.
Spot platinum <XPT=> also rose from earlier lows in the day
to stand at $2,089/2,109 an ounce, but still down from
$2,118/2,138 late in New York.
Oil prices were steady in Asian trade on Wednesday after
sliding by more than $3 a barrel on Tuesday on a broad rise in
the U.S. dollar and worries that high oil prices may finally be
starting to hit demand in the United States and Asia. []
Front-month U.S. crude for July delivery <CLc1> was broadly
unchanged at $128.7 by 0623 GMT.
"Except for the dollar weakening or oil going back up, I
don't expect much to happen today," said Darren Heathcote of
Investec Australia in Sydney, adding that he saw support for
the precious metal at $903 and resistance at $915 an ounce.
The dollar edged down in afternoon Asian trade, slipping as
oil prices steadied.[] The dollar index was down 0.24
percent at 72.215 by 0619 GMT, erasing earlier gains.
Gold futures for June delivery <GCM8> on the COMEX division
of the New York Mercantile Exchange were up $0.30 at $908.10 an
ounce.
The most active Tokyo gold futures contract <0#JAU:>, for
April, was down 42 yen at 3,061 yen, after having settled 2 yen
lower on Tuesday.
Silver and palladium ticked up after Tuesday's fall which
saw silver down by more than 4 percent.
Silver <XAG=> edged up marginally to $17.45/17.51 an ounce
from $17.41/17.47 late on Tuesday.
Spot palladium <XPD=> was quoted at $437/$445 an ounce, up
from $436.50/444.50.
Precious metals prices at 0609 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 907.50 2.70 +0.30 8.98
Spot Silver 17.45 0.07 +0.40 18.14
Spot Platinum 2089.00 -29.00 -1.37 37.43
Spot Palladium 437.00 0.50 +0.11 18.75
TOCOM Gold 3059.00 -44.00 -1.42 -0.03
26762
TOCOM Platinum 6815.00 -225.00 -3.20 27.65
27664
TOCOM Silver 590.00 -22.90 -3.74 9.06
746
TOCOM Palladium 1502.00 -22.00 -1.44 11.18
915
Euro/Dollar 1.5716
Dollar/Yen 103.97
Note - TOCOM prices in yen per gram, except TOCOM silver which
is priced in yen per 10 grams. Spot prices in $ per ounce.
(Reporting by Maryelle Demongeot; Editing by Anshuman Daga)
